Private Retirement Schemes (PRS) Terms Explained
Private Retirement Schemes (PRS) are becoming increasingly popular in Malaysia. If you are
looking to sign up for one right now, here are the common terms you’ll need to get accustomed to:
PRS
This refers to the Private Retirement Schemes. They are voluntary private pension funds similar
to EPF.
PRS Provider
This refers to a company which has been authorized by the Securities Commission (SC) to offer
PRS. As at 5 April 2012, there are 8 approved PRS Providers:

AmInvestment Management Sdn Bhd

American International Assurance Bhd

CIMB-Principal Asset Management Bhd

Hwang Investment Management Berhad

ING Funds Bhd

Manulife Unit Trust Bhd

Public Mutual Bhd

RHB Investment Management Sdn Bhd
PRS Consultant
This is an individual that is licensed to sell PRS products. A PRS Consultant has to fulfill the
following criteria:

Be at least 21 years of age

Possesses no criminal record

Be registered with the Federation of Investment Managers Malaysia (FIMM)

Has passed the PRS examination offered by FIMM
PPA
This refers to the Private Pension Administrator, which is regulated by the SC and acts as a
record-keeping, resource and research center for all things related to PRS. You can manage all
your PRS accounts with different PRS Providers with the PPA.
Securities Commission
SC is a regulatory body empowered by the law to supervise the PRS sector. SC also regulates
other investment-related products and providers in Malaysia.
Fund Options / Fund Plans
These are the investment options offered to you by the PRS Providers. These options differ based
on your tolerance to investment risk.
Unit Price
The unit price of PRS works in the same way as a share price. It is a reflection of the worth of the
PRS fund you’re investing in, and could fluctuate from time to time. For the record: the Unit
Price for PRS changes daily.
Scheme Trustee
This refers to an independent party that protects investors by ensuring that the PRS funds are
operated according to the original objectives and requirements. A Scheme Trustee also holds the
assets that the funds invest in on behalf of the investors.
Distributions
This refers to the income component of a PRS. In the simplest terms, Distributions are like
dividends you receive from shares. And just like dividends, Distributions are NOT guaranteed.
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